will pay a $20,000 fine for continuing to contact a gambler who had placed himself on Colorado’s self-exclusion list, which is designed to help people control gambling addiction.
The fine was levied Thursday during the monthly meeting after the sportsbook and Colorado regulators reached an agreement on the violation.
Fanatics also agreed to audit its self-exclusion list to determine whether other people on the list were sent marketing promotions by text message between Jan. 1, 2024, and March 1, 2026, according to which was approved by the commission.
Fanatics will also train its staff members, who work as VIP liaisons, on the state's self-exclusion rules, the agreement stated.
Colorado's self-exclusion list allows gamblers to enroll themselves for periods of one, three or five years, during which they are barred from online sports betting and gambling companies are supposed to stop sending them marketing materials. There are more than 1,200 people on that list.
The self-exclusion list was created as a response to concerns about rising gambling addiction since online sports betting became legal in Colorado in 2020.
Fanatics stated in October 2025 that it "will not intentionally market to any known self-excluded individuals" when it submitted its responsible gaming plan to state regulators.
However, a Colorado customer who placed himself on the state's self-exclusion list on Jan. 15 was contacted twice by a Fanatics VIP team member.
The former customer, identified only by his initials, received a promotional offer via text message on Feb. 1. The contact was reported, and Fanatics distributed training materials to its VIP team members on Feb. 4, the stipulation agreement said.
The customer received a second text message on Feb. 17 with another promotional offer.
Gambling companies offer VIP status to customers who bet frequently, and those promotions offer bonuses and other perks to those gamblers.
But insiders and critics of the sports betting business say those VIP memberships are offered to people who lose the most money, and the companies prey on people with potential addictions.
Danny Funt, author of "Everybody Loses: The Tumultuous Rise of American Sports Gambling," reported that VIP deals are offered to 2% to 3% of customers who account for 60% to 70% of a company's revenue.
"The perks to keep those customers loyal (and losing a staggering amount of money) are unbelievable," Funt in January. "But to qualify, a former VIP host at DraftKings told me betting *irresponsibly* is basically a requirement. 'If your money management is good, you're probably not going to end up being a VIP,' he said. Even something as basic as betting a little less than usual when you're iffy about a particular game can be disqualifying."
Fanatics previously operated in Colorado as PointsBet, which signed an agreement with the University of Colorado Boulder to spend $1.6 million to promote sports gambling on campus. That deal was following heavy criticism.
Fanatics took over in December 2023.
